Wednesday’s move is part of a crackdown by regulators worldwide against tax avoidance.

A Starbucks spokesman said: “Starbucks shares the concerns expressed by the Netherlands government that there are significant errors in the decision, and we plan to appeal.”

But campaigners welcomed Wednesday’s announcement, pointing out tax breaks are also common in developing countries where Governments feel obliged to agree favourable terms to attract business.

Toby Quantrill, from the charity Christian Aid, said: “In its ruling against these cosy tax deals, the Commission has made a hugely important point: that it is wrong for one country to lure multinationals with low tax rates, at the inevitable expense of people in other countries.

“The Commission has established a principle which is both factually and morally correct and we look forward to seeing the ripples it will create both within and outside Europe.”

Anders Dahlbeck, tax justice policy advisor at ActionAid, said: “Today’s ruling is just the tip of the iceberg when it comes to corporate tax breaks.

“We need a fairer global tax system which tackles tax breaks in Europe and developing countries.”